A statistical model is a set of mathematical equations which describe the behavior of an object of study in terms of random variables and their associated probability distributions. For example, in order to forecast and manage business risk, a set of variables is identified that describe the state of the world and are forecasted into the future. To help with these processes, data mining may be used to track large numbers of candidate variables (e.g., hundred, thousands, or more). In selecting which variables from the candidate set should be used in generating a data model, a balance is sought between selecting a small enough number of variables so that the model is interpretable to a user and avoiding the loss of significant amounts of information in the data contained in rejected variables.